If total revenue goes down when price falls, the price elasticity of demand is said to be:
A) price inelastic.
B) unit price elastic.
C) price elastic.
D) positive.

Question

Quizplus · Accepted Answer

When total revenue decreases as price falls, it indicates that the quantity demanded does not increase enough to offset the lower price, which is characteristic of price inelastic demand.

If Total Revenue Goes Down When Price Falls, the Price